PSX snaps bullish momentum in a jittery week

Geopolitical tensions, a downward revision in growth forecasts by the International Monetary Fund (IMF), and a weaker rupee due to declining foreign exchange reserves triggered selling pressure at the Pakistan Stock Exchange (PSX). As a result, the benchmark KSE 100 index ended the outgoing week in negative territory, breaking its bullish momentum. On Tuesday, IMF slashed its growth forecast for Pakistan to 2.6 per cent from 3pc for the current fiscal year, citing the impact of US tariffs. Fitch Ratings projected that the rupee may depreciate to Rs285 against the dollar in the coming months and to Rs295 by June 2026. AKD Securities Ltd said the PSX remained volatile throughout the week, as escalating geopolitical tensions post the Pahalgam attack and India’s subsequent threat to revoke the Indus Water Treaty undermined investor sentiment.